Registration, VAT and service tax

Q: Hi,

I have bought a new property and i want information about the taxes that are applicable.

1) Registration Charge: Land Deed + Agreement of construction

2) VAT(1.25%):

3) Service Tax(3.09%):

Can you please let me know on what amount will the above three be charged? The builder is charging on the total sales amount but I am not sure if that is correct.. Please guide me to the right government forum from where I can get the information..

naval, Apartment Resident, Hyderabad

26th November 2012

Property Tax in Hyderabad

vat & service tax on new apartment

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Replies (6)

Hi all,
It would be great if you can give specific details, about the builder and the project name.

While you ask for people's help, it would help all the other people here now and in future, so that they can be cautious while dealing with such builder.

Commonfloor forum is about sharing knowledge and helping others, no one is getting paid here for writing helpful posts for various queries posted here everyday. So do your bit in helping others as well.

Ramesh Reddy, Bangalore

7th August 2014

Comment

Hello Sir ,

Please clarify on the VAT rules on underconstruction property in Bangalore

The property is under JDA with landowner . The builder is giving two agreement (1. Construction ,2. Sales) Could you clarify on the tax as below charger by builder and what is right amount -

By builder
1. VAT = {(Basic cost + Car parking +bescom/bass + club membership)*9.5}
2. Service TAx = {(Basic cost + car parking +,bescomm+ club+ maintenance + corpus fund)*25%*12.3}

Please clarify and suggest.If possible share the reference so that I can share with builder

Neha Gupta, Apartment Resident

28th July 2014

Comment

Hello Sir,
When you buy a flat you buy two things from the builder 1. Undivided Land of Share and 2. The flat. Both VAT and Service Tax (As on Jan 2013 ...Service Tax @ 12.36% on 25% of BASIC Price ( if Land Cost is included ) otherwise 12.36% on 33% of Basic Sale price need to be paid on no 2 and not on no 1. Make sure you get a TAX invoice for those if builder is not giving you the TAX invoice then don't give those amount.....rest of the things as KTPCL+BWSSB + AMMENITIES are chnarged at 12.36% ....but Parking could not be charged for service tax as , as per SC decision Parking slot is not an extra service but the part of construction itself.

Yogendra, Bangalore

7th August 2014

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Magdah Loo,

5th February 2014

Comment

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Dev, Mangalore

26th November 2012

Comment

Normally 1% VAT is calculated and collected at the time of Registering Sale Deed.Service Tax would be 4.12% of the total considered value.To get the appropriate calculation of Vat and Service tax you can take advice from your legal expert or lawyer.The annual property tax for the city of Hyderabad is calculated as 3.5 X Total plinth areas (in SFt) X Monthly rental value (per sqft in Rs.). If the property has mixed construction ie. both RCC and tiled/sheet then measure the area separately and apply the rates appropriate to the category. You can calculate your Annual Property Tax online.

Sushant, Mumbai

26th November 2012

Comment

Hello Naval, the Hyderabad property tax rate varies with size and location of property in the city. Property Tax Identification Number (PTIN) is an important Identification Number for making online payment of Hyderabad Property Tax. Online property tax payment has really reduced the burden of standing in long queues and saved time of property owners. The main advantage of the online procedure in the property tax assessment, calculation and payment is that it has given transparency and swift to the work. The Greater Hyderabad Municipal Corporation (GHMC) has divided the city into 5 Zones (North, South, Central, East and West) and 18 Circles.

Ravi, Amritsar

26th November 2012

Comment

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